Trade of the Day: USD/CAD

By: Dima Chernovolov

USD/CAD continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the medium Initial Trend (6 bars) and strong Uniformity and Clarity (8 bars).  USD/CAD is expected to rise further inside this Up Channel.

As can be seen from the daily USD/CAD chart below – the price earlier broke above the key resistance level 1.2850 (which earlier reversed the pair sharply at the start of this month). This price level is acting as the strong support level after it was broken. The proximity of this support level increases the probability USD/CAD will continue to rise inside this Up Channel.